whats going to happen from here, page-9

Not sure if anyone has read this article from the west the other day.

Interesting that they say Kagara had deposited the bond but it had been sent back by bureaucrats because it had been lodged by the wrong company.




A West Perth-based junior explorer faces being trapped in the collapse of base metal miner Kagara over the failure to lodge a $3.75 million environmental bond for a troubled North Queensland copper mine. A senior Queensland official has warned that a Monto Minerals subsidiary could be held responsible as the holder of a lease and environment authority for the Kagara-operated Baal Gammon mine.

Administrators appointed by Kagara executives eight days ago stopped operations at Baal Gammon and Kagara's other North Queensland mines, with 250 of the company's 325 workers being made redundant.

Kagara suffered environmental problems at Baal Gammon during the wet season after heavy metals from historical workings at the site spilled into nearby creek system.

Kagara was ordered to upgrade water management at the site and carry out an investigation into the effect on the downstream environment.

After Kagara collapsed last week, Monto Minerals said Kagara had failed to lodge the $3.75 million environmental bond for Baal Gammon. A source told _The West Australian _ that Kagara had deposited the bond but it had been sent back by bureaucrats because it had been lodged by the wrong company.

A Queensland Natural Resources and Mines Department of spokesman denied a bond was ever deposited and the company had instead lodged a draft bank guarantee document.

The spokesman said the document was returned with the advice that it should be lodged in the name of Baal Gammon Copper Pty Ltd, the Monto subsidiary holding the lease. But it was never lodged.

The Environment and Heritage Protection Department's north region services director Andrew Buckley said his agency was liaising with administrators to ensure more works were carried out on the mine site before next wet season and the bond was also being discussed. Mr Buckley said Baal Gammon Copper could be held responsible if Kagara did not comply with its obligations.

Monto chief executive James Allchurch could not be contacted for comment.

He said earlier last week he was hopeful the administrators could revive Kagara and claimed getting Baal Gammon operating again would be in the collapsed miner's best interest to keep ore flowing to its nearby Mt Garnet plant.